INVESTOR RELATIONS

FORM OF NOTICE OF CONVERSION OF 5-YEAR 3.5% REDEEMABLE CONVERTIBLE UNSECURED LOAN STOCKS ("RCULS" OR "BARAKAH-LA")

BURSA ANNOUNCEMENTS
Date: 21 October 2015

MEMORANDUM OF UNDERSTANDING MEMORANDUM OF UNDERSTANDING BETWEEN PBJV GROUP SDN BHD AND HILONG MARINE ENGINEERING (HONG KONG) LIMITED DATED 21 OCTOBER 2015


Type Announcement
Subject MEMORANDUM OF UNDERSTANDING
Description MEMORANDUM OF UNDERSTANDING BETWEEN PBJV GROUP SDN BHD AND HILONG MARINE ENGINEERING (HONG KONG) LIMITED DATED 21 OCTOBER 2015

INTRODUCTION

Barakah Offshore Petroleum Berhad ("Barakah" or the "Company") is pleased to announce that its wholly-owned subsidiary company, PBJV Group Sdn Bhd ("PBJV") has on 21 October 2015 entered into a Memorandum of Understanding ("MOU") with Hilong Marine Engineering (Hong Kong) Limited (HMEL), a subsidiary of the Hong Kong-listed Hilong Holding Limited (Hilong)(hereinafter referred to as "the Parties").

The MOU will target joint prospects for both companies in Malaysia for offshore transportation and installation projects for platform heavy lifts and pipelay as well as full Engineering, Procurement, Construction, Installation and Commissioning ("EPCIC") for offshore oil and gas field development projects.

INFORMATION ON HMEL AND HILONG

 

HMEL is a company established under Hong Kong Companies Registrywhose principal place of business is at Room 3206, Tower One, Times Square, 1 Matheson Street, Causeway Bay, Hong Kong. HMEL is the owner of a heavy lift and pipelay installation vessel, Hilong 106, a 3000 tons Derrick Pipe Lay Barge.

 

Hilong is one of global leading integrated oilfield equipment manufacturers and service providers with market leadership position in the fields of drill pipe, coating and oilfield services. Hilong continuously expands its business horizon, including into offshore engineering services field with offshore pipe laying and heavy lift.

 

 

SALIENT TERMS OF THE MOU

 

PBJV and Hilong desire to work together on a non-exclusive basis in exploring opportunities for collaboration built on the strengths of both Parties particularly in transport and installation prospects including pipelay and platform installation and full EPCIC for field developments projects where the capability suits the technical capabilities of Hilong106 and its cost competitiveness.

 

The MOU shall commence on 21 October 2015 and terminate upon expiration of two (2) years from the date of the MOU ("the Expiry Date"). The Parties may upon mutual agreement extend the Expiry Date.The MOU may be terminated by either of the Parties giving to the other Party one (1) month notice in writing of its intention to do so.

 

 

FINANCIAL EFFECTS OF THE MOU

 

The MOU is not expected to have any material effects on theissued and paid up share capital, net assets and earnings ofthe Company for the financial year ending 31 December 2015.

 

DIRECTORS' AND MAJOR SHAREHOLDERS' INTEREST

 

None of the Directors or major shareholders of Barakah or personsconnected with them has any interest, direct and indirect, inthe MOU.

 

STATEMENT BY DIRECTORS

The Board of Directors of the Company, having taken into consideration all aspects of the MOU, is of the opinion that the MOU is entered in the best interest of the Company and its subsidiaries.

 

This announcement is dated 21 October 2015.





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